Law Commons^™

Chevron And Preemption, Nina A. Mendelson

Articles

This Article takes a more functional approach to reconciling preemption doctrine with Chevron when Congress has not expressly delegated preemptive authority to an agency, an approach that considers a variety of concerns, including political accountability, institutional competence, and related concerns. The Article assumes that federalism values, such as ensuring core state regulatory authority and autonomy, are important and can be protected through political processes." It argues that although Congress's "regional structure" might hint at great sensitivity to state concerns, it actually may lead Congress to undervalue some federalism benefits that are more national in nature. Meanwhile, executive agencies generally have …

Tender Offers By Controlling Shareholders: The Specter Of Coercion And Fair Price, Adam C. Pritchard

Articles

Taking your company private has never been so appealing. The collapse of the tech bubble has left many companies whose stock prices bordered on the stratospheric now trading at small fractions of their historical highs. The spate of accounting scandals that followed the bursting of the bubble has taken some of the shine off the aura of being a public company-the glare of the spotlight from stock analysts and the business press looks much less inviting, notwithstanding the monitoring benefits that the spotlight purports to confer. Moreover, the regulatory backlash against those accounting scandals has made the costs of being …

Clearing The Way For An Effective Federal-State Partnership In Health Reform, Eleanor D. Kinney

University of Michigan Journal of Law Reform

At century's end, states have assumed a very different role in the design, implementation, and operation of health service programs than they did twenty-five years ago. In the current volatile political atmosphere particularly at the federal level, states have taken up the mantle of healthcare reform in the final years of the 1990s. Yet there remain problems and difficulties with the current federal-state relationship in health reform. The critical question is whether states can successfully accomplish genuine reform given its politically charged, complex and costly nature. This question takes on particular significance for the most important reform-expanding coverage to the …

Why Is This Man A Moderate?, Richard A. Epstein

Michigan Law Review

A Review of William A. Fischel, Regulatory Takings: Law, Economics, and Politics

The Information Highway Must Pay Its Way Through Cities: A Discussion Of The Authority Of State And Local Governments To Be Compensated For The Use Of Public Rights-Of-Way, Clarence A. West

Michigan Telecommunications & Technology Law Review

In the ever-changing telecommunications industry there appears to be an enormous amount of confusion not only as to the appropriate amount of compensation chargeable to the users of public rights-of-way, but also as to the very authority of state and local governments to require compensation. This was not always the case. It has long been a well-settled legal principle that local governments may receive reasonable "rental" compensation from private commercial entities for their use of local public property for private economic gain, even where federal statutory law restricts local governments from denying access to rights-of-way for telecommunications services. For example, …

Michigan's Teacher Certification Requirement As Applied To Religiously Motivated Home Schools, Donald D. Dorman

University of Michigan Journal of Law Reform

This Note defends the thesis that the teacher-certification requirement of Michigan's compulsory attendance statute is unconstitutional as applied to people who, for sincere religious reasons, believe they must teach their children at home. Michigan courts have incorrectly applied a rational-basis test in regulating religiously motivated home schools, rather than the strict scrutiny required by the U.S. Supreme Court for cases involving both the free exercise of religion and parents' interest in directing their children's education.

Protecting Nonshareholder Interests In The Market For Corporate Control: A Role For State Takeover Statutes, Frank J. Garcia

University of Michigan Journal of Law Reform

Part I of this Note describes a phenomenon of modern corporate activity first identified over fifty years ago as the "separation of ownership and control." This separation gives rise to the need for a governing corporate norm; recognizing the normative aspect of this phenomenon has direct implications for the takeover debate.

Part II analyzes the problem of a target board's fiduciary duty as the modern version of the fundamental normative issue of corporate law. It argues that the norm of shareholder wealth maximization, assumed as the starting point by those most in favor of an active and minimally regulated control …

Introduction To The Banking Law Symposium: A 200 Year Journey From Anarchy To Oligarchy, James J. White

Articles

Each of the five articles in this symposium deals in one way or another with a single question: In what ways and to what end should banks be regulated? Although banks and bankers are the very symbols of a capitalist economy, banks and bankers are not free. No banker may set up business on his own; he must have a charter. With insignificant exceptions no bank or bank holding company can operate a steel mill, sell grass seed, manufacture snowmobiles, or engage in any other activity that is not related to banking. There are rules that limit the geographic scope …

Federal Chartering Revisited, Donald E. Schwartz

University of Michigan Journal of Law Reform

The protections that corporation law provided to shareholders and to our economic community against the excesses and complacency of corporate directors and managers have undergone a general weakening. Although it is uncertain whether the ALI can accomplish effective and meaningful reforms, this effort may be the most important attempt by the corporate community to reform itself.

Territoriality And The Perils Of Formalism, Mark P. Gergen

Michigan Law Review

Recently in this journal Donald Regan published a pair of essays on CTS Corp. v. Dynamics Corp. of America. Much of the first essay elaborates his theory that what the Supreme Court should be doing and what it is doing under the dormant commerce clause is checking state laws adopted with a substantial protectionist purpose. The rest of the first essay and all of the second essay develop a different check on state lawmaking power in interstate affairs: a rule that states may not regulate conduct beyond their borders. He calls this the extraterritoriality principle. Elsewhere I have questioned …

Liquor Price Affirmation Statutes And The Dormant Commerce Clause, Ward A. Greenberg

Michigan Law Review

Part I of this Note examines the current state of the law in the liquor affirmation area. Part II argues that the twenty-first amendment may not be invoked to justify the extraterritorial impact of these statutes. The amendment does not preempt the commerce clause in the liquor area. While it gives the states free rein over liquor internally, it provides no basis for any extraterritorial projection of liquor price regulation. Part III considers the commerce clause analysis of Brown-Forman and argues that any interstate effects of these statutes will cause them to violate the commerce clause. This section argues that …

Siamese Essays: (I) Cts Corp. V. Dynamics Corp. Of America And Dormant Commerce Clause Doctrine; (Ii) Extraterritorial State Legislation, Donald H. Regan

Articles

What follows is two essays, related as Siamese twins. Both essays developed from a single conception. They are distinct, but they remain connected by a shared subtopic. The first essay is about CTS Corp. v. Dynamics Corp. of America1 as a contribution to dormant commerce clause doctrine. The second essay is about the constitutional principle that states may not legislate extraterritorially, which I shall refer to as the "extraterritoriality principle." The shared subtopic is the extraterritoriality problem in CTS. (There is an extraterritoriality problem in CTS, even though the Court does not discuss it in those terms.) I could have …

The Supreme Court And State Protectionism: Making Sense Of The Dormant Commerce Clause, Donald H. Regan

Articles

For almost fifty years, scholars have urged the Court to "balance" in dormant commerce clause cases; and the scholars have imagined that the Court was following their advice. The Court has indeed claimed to balance, winning scholarly approval. But the Court knows better than the scholars. Despite what the Court has said, it has not been balancing. It has been following a simpler and better-justified course. In the central area of dormant commerce clause jurisprudence, comprising what I shall call "movement-of-goods" cases), the Court has been concerned exclusively with preventing states from engaging in purposeful economic protectionism. Not only is …

Powerline: The First Battle Of America's Energy War, Michigan Law Review

Michigan Law Review

A Review of Powerline: The First Battle of America's Energy War by Barry M. Casper and Paul David Wellstone

Regulation Through The Looking Glass: Hospitals, Blue Cross, And Certificate-Of-Need, Sallyanne Payton, Rhoda M. Powsner

Michigan Law Review

A clear focus on the commitment of the public health and hospital establishments to the large teaching hospital and their belief in rationalizing the health care system through community-based planning allows us to understand the ideas and institutions that have produced our present system of hospital regulation. It can also help us to understand the structure and behavior of the hospital industry and can illuminate current controversies over health care policy.

What follows is a narrative account of the development of regional planning and certificate-of-need legislation. As part of that story, we trace the evolution of the Blue Cross, explain …

Michigan's Nursing Home Reform Law, John D. Croll

University of Michigan Journal of Law Reform

This article examines Michigan's new nursing home reform law, which has been hailed as "landmark legislation" and as a model for the entire country. Part I examines the past failures of nursing home regulation and the need for reform. Part II analyzes the law's key provisions. Part III examines the weaknesses of certain enforcement measures. The article proposes the following improvements: (1) extension of the law's protection to residents of homes for the aged; (2) greater access to patients by approved organizations; (3) adoption of nurse-patient ratios; (4) improvement of inspection procedures; and (5) allowance for patients or their representatives …

Federal Preemption Of State Law: The Example Of Overbooking In The Airline Industry, Michigan Law Review

Michigan Law Review

Such complexity is common in the airline context, both because the Federal Aviation Act1 (FAA) and the Civil Aeronautics Board (CAB) do not purport to regulate all aspects of the industry and because airline activities are so varied that they come within the reach of numerous state statutory and common-law rules. This Note will consider the power of the CAB to preempt state law and thereby to insulate airline activities from state-law liability. It will suggest a framework for analyzing the problems of preemption by focusing on airline concealment of overbooking practices. Section I explains airline overbooking and demonstrates that …

The Role Of The Local Comprehensive Plan In Land Use Regulation, Daniel R. Mandelker

Michigan Law Review

This article will deal with the enlarged role of the comprehensive plan in the local land use control process. Part I examines traditional judicial views of the role of the comprehensive plan as a guide to zoning administration. Part II suggests that innovations in land use control and comprehensive planning techniques evidence a need for mandatory planning. Subsequent sections examine changes in the judicial attitude toward the role of the comprehensive plan in land use control administration, and survey some enacted and proposed state legislation that modifies the early planning acts by requiring comprehensive planning. This legislation is analyzed to …

The Interrelationship Between Excusionary Subdivision Control - A Second Look, Roger A. Cunningham

University of Michigan Journal of Law Reform

The thesis of this article is that the conclusion set out above is both oversimplified and inaccurate. Contrary to the author's contention in his Journal article, there are "viable distinctions between zoning and subdivision control," and consequently the major exclusionary techniques available to suburban communities through "zoning" are simply not available in connection with "subdivision control." Dramatic attempts at racial exclusion through subdivision control are likely to be infrequent. Although subdivision regulations, like zoning ordinances and building codes, require expenditures by land developers which increase the cost of housing and thus tend to exclude the poor, the effect of subdivision …

Interstate Land Sales Regulation: The Case For An Expanded Federal Role, Robert R. Maxwell

University of Michigan Journal of Law Reform

Public awareness of the need for protection from fraudulent vendors of undeveloped land recurs periodically and has led to brief flurries of legislative and journalistic attention since the Florida land boom of the 1920s. Despite the rush of state and federal legislation enacted in recent years to combat sharp practices in the land development field, the need for stronger regulation has been revealed by testimony at public hearings held by the Office of Interstate Land Sales Registration as well as by numerous news accounts of questionable tactics employed by some land development promoters. The recent actions of the Federal Trade …

Proposed Regulation Of Limited Partnership Investment Programs, Ivan J. Schell

University of Michigan Journal of Law Reform

Limited partners have long been admonished to scrutinize potential investments; this advice is often ignored, however, by investors eager to reap quick profits. Furthermore, the proliferation of limited partnership interests in a single enterprise diffuses the focus of investor vigilance and increases the potential for undetected abuses. Thus a need for regulation, either governmental or private, has developed. Currently the Uniform Limited Partnership Act and blue sky laws provide some control of limited partnership abuses at the state level. On the interstate level, the Midwest Securities Commissioners Association, the National Association of Securities Dealers, and the Securities and Exchange Commission …

Jurisdiction--Atomic Energy--Federal Pre-Emption And State Regulation Of Radioactive Air Pollution: Who Is The Master Of The Atomic Genie?, Michigan Law Review

Michigan Law Review

Pending litigation between the Minnesota Pollution Control Agency and Northern States Power Company presents a potential federal-state conflict over the right of a state to impose upon operators of nuclear power plants more exacting pollution control standards than those required by regulations of the Atomic Energy Commission (AEC). The AEC issued Northern States Power Company a permit to construct a nuclear power generating plant in Monticello, Minnesota. The regulations under which that permit was issued place a ceiling on the amount of radioactive effluents which can be discharged into the air during the course of the plant's operations. But under …

Motor Vehicle Air Pollution: State Authority And Federal Pre-Emption, David P. Currie

Michigan Law Review

The problem of state authority over motor vehicle air pollution was recently highlighted when the Illinois Air Pollution Control Board, for the first time, adopted regulations to deal with vehicle emissions. Those regulations are disappointingly feeble. Except for outlawing visible smoke and for making it unlawful to dismantle pollution control devices, the new rules do nothing but state that the Board may decide to do something in the future about pollution from automobiles.

In attempting to improve upon these regulations, however, one is struck with a sense of considerable futility. Given the present limits of technology and the necessarily legislative …

Constitutional Law-Relation Of Federal And State Governments- Applicability Of State Minimum Price Regulations To Federal Procurement, Alexander E. Bennett

Michigan Law Review

The United States accepted the lowest bids for the supply of milk at three military installations in California. Because these bids were below the minimum prices for wholesale milk prescribed by state law, California instituted proceedings in the state courts for civil damages and injunctive relief against the successful bidders. The United States brought a separate action in a federal district court asking that the state be enjoined from applying its minimum price regulations to milk purchases by the armed services on the grounds that the military installations were federal enclaves over which the United States has exclusive jurisdiction and …

State Control Of Radiation Hazards: An Intergovernmental Relations Problem, Samuel D. Estep, Martin Adelman

Michigan Law Review

The purpose of this article is to set forth the nature of the intergovernmental problem. This involves an analysis of the extent and limitations of federal power, a determination of congressional intent on the issue of federal pre-emption, and an appraisal of the steps now being taken by the Atomic Energy Commission to turn over part of the radiation safety regulatory program to the states.

Competitive Operation Of Municipally And Privately Owned Utilities, Charles M. Kneier

Michigan Law Review

Public utility services for cities are usually provided on the principle of regulated monopoly. It has been found that by the very nature of the utility business, better service can be had and at cheaper rates by the use of one supplier rather than by the use of competing plants: This one plant having a monopoly of the business may be either privately or municipally owned. If the service is furnished by a privately owned utility, regulation is usually by a state commission, but in a few states regulation is still largely by the city in which the company operates. …

Municipal Corporations-Validity Of Juke Box Licensing Ordinance As Exercise Of Police Power, Edward S. Tripp S.Ed.

Michigan Law Review

Plaintiff owned and operated coin-operated phonographs, commonly known as juke boxes, in the City of New Kensington, Pennsylvania. The city enacted an ordinance making the possession of coin-operated phonographs or music boxes within the city without a license illegal. An annual license fee of $25.00 per machine was imposed and violators were subjected to fine and imprisonment, each day of illegal operation constituting a separate offense. Plaintiff sought to enjoin enforcement of the ordinance, alleging that it would cause him irreparable injury and that it was unconstitutional because beyond the legislative power of the city council. An injunction was granted …

Constitutional Law-Freedom Of Speech For Labor Organizers-Registration Requirement Invalid, Francis Powers

Michigan Law Review

Collins v. Thomas decided by the Supreme Court in January is a decision of great practical importance in that it falls at a point where three recently developed constitutional doctrines enmesh or intersect with one another. The case makes it necessary that the Court integrate these doctrines and distinguish the areas in which they are respectively applicable.

Constitutional Law - Commerce Clause - Labor Law - Power Of State To Enjoin Unfair Labor Practices Of Employees In Industries Engaged In Interstate Commerce, Michigan Law Review

Michigan Law Review

The appellant (defendant in the case below) and certain of its members were found guilty of unfair labor practices as defined by the Wisconsin Employment Relations Act. Plaintiff-appellee issued a cease and desist order, which was sustained by the lower court despite defendant's contention that the statute was unconstitutional on the ground that Congress had precluded such state legislation affecting interstate industries by enacting the National Labor Relations Act. Held, plaintiff's order sustained. State legislation not repugnant to the Wagner Act is operative in this field so long as the National Labor Relations Board has not acted in the …

Municipal Corporations - Licenses - Amount Of Fee, S. R. Stroud

Michigan Law Review

The defendant, a sandwich peddler, was convicted in the justice court of violation of an ordinance requiring peddlers to have a license. Upon appeal to the circuit court the conviction was set aside on the ground that the ordinance requiring a peddler to obtain a license at $150 per vehicle per year was invalid since the fee was unreasonably high. Held, the circuit court should be reversed and the conviction sustained since the amount of the license fee could not be considered unreasonably excessive in view of all the circumstances. People v. Riksen, 284 Mich. 284, 279 N. …